ATO Announces Alternative JobKeeper Test
The eligibility requirements for the JobKeeper payment scheme has resulted in many businesses experiencing a reduction in revenue, but still not qualifying for salary support from the Government. An alternative test to support businesses in these circumstances has come into effect.
Officially named the Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules 2020, the alternative tests addresses seven circumstances.
- Where an entity commences business after the relevant comparison period in 2019 or the business did not exist in the comparison period, therefore there is no relevant comparison period in 2019
- Where an entity acquired or disposed of part of the business after the comparison period in 2019
- Where an entity has restructured part or all of the business after the comparison period in 2019
- Entities who had an increase in turn over by 50 per cent or more in the 12 months before the applicable turnover test period
- Entities who had an increase of 50 per cent or more in the six months before the applicable turnover test period
- Entities who had an increase of 12.5 per cent or more in the three months before the applicable turnover test period
- A sole trader or small partnership where the sole trader or one of the partners did not work for all or part of the comparison period due to illness, injury or were on leave during the comparison period – and those circumstances affected the turnover of the sole trader or partnership
Each circumstance has its own alternative test. More information can be found on the test circumstances here.
The full legislation, Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules 2020, explains each test circumstance requirements and relevant testing.
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